The U. S. government pays an economist at the U. S. Department of Commerce $50,000 in salary in 2006. The economist then retires. In 2007, the government pays him $30,000 in retirement benefits. Which of the following is correct?
a.
The 2006 payment is included in 2006 GDP as government purchases, and the 2007 payment is included in 2007 GDP as government purchases.
b.
The 2006 payment is included in 2006 GDP as government purchases, and the 2007 payment is included in 2007 GDP as government transfer payments.
c.
The 2006 payment is included in 2006 GDP as government purchases, and the 2007 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.
d.
The 2006 payment is included in 2006 GDP as government purchases, but the 2007 payment is not included in 2007 GDP.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The U. S. government pays an economist at the U. S. Department of Commerce $50,000 in salary in 2006. The economist then retires. In 2007, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Do It! Review 1-3 (Part Level Submission) Marsh Corporation began operations on January 1, 2014. The following information is available for Marsh Corporation on December 31, 2014.
Answers (1)
1. The level of prices and the value of money Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $9.00.
Answers (1)
Jill invests $1,000.00 to buy ten shares of Good Corporation. The corporation goes bankrupt having no assets and $1 million in liabilities. The most Jill can lose is the $1,000.00 she invested.
Answers (1)
Summarize the internal control principle of establishing responsibility by completing the following sentence.
Answers (1)
What factors caused American business to develop into a mixed economic system rather than some other type of economic system?
Answers (1)
New Questions in Business
Stuart Weddle's father is 55 years old and wants to set up a cash flow stream that would be forever. He would like to receive $15,000 every year, beginning at the end of this year.
Answers (2)
A year ago, you deposited $30,000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted.
Answers (1)
When banks spend (or loan) money, the money supply increases and when interest / loan payments are received, the money supply declines ... True false
Answers (1)
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements.
Answers (1)
Company X had a net income of $25,000 for the year ended December 31, 2016. In 2016, Company X paid the out dividends of $10,000. At the end of 2016, Company X had a retained earnings balance of $60,000.
Answers (1)